Frequently Asked Questions:  Estate Planning

 
WHAT IS ESTATE PLANNING?
Estate Planning is a process in which one plans for the management and disposition of assets both during lifetime and after death, as well as planning for personal and health care in the event of temporary or permanent incapacity.
 

WHAT IS AN ESTATE?
Your estate consists of all the assets or interest in assets that you own. The "value" of your estate equals everything that you own minus everything you own. Many times this is consisted your "net worth." However, for estate planning purposes, your estate can categorized as either your taxable estate or your probate estate. Your taxable estate is the property that is subject to federal estate taxes. Your probate estate consists of the property that must be probated before it can be distributed to your designated beneficiaries.
 

DO I NEED ESTATE PLANNING OR IS IT ONLY FOR THE RICH?
Almost everyone needs estate planning in some form, regardless of the size of their estate. We all want to make such that after our death our assets go to the persons or organizations we desire. We all want to make sure that our assets and property are not "eaten up" by taxes. We all want to know that in the event of temporary or permanent incapacity, our needs will be taken care of.

For small estates, then, estate planning may simply focus on determining who receives your assets and property after your death as well as the best method for transferring those assets with minimum difficulty. For larger estate, estate planning may focus on methods of preserving your estate for the benefit of heirs and avoiding estate taxes.

However, regardless of the size of your estate, estate planning will focus on ensuring that in the event of temporary or permanent incapacity your needs are taken care of, that an agent is designated to handle your affairs and to make health care decisions for you should it become necessary.